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What is the future value of a five-year ordinary annuity

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Reference no: EM132815608

Problem 1: Which of the following would you rather have if your rate of discount is 20 percent?

  1. P300 in one year
  2. P350 in two year
  3. P420 in three years
  4. P1,500 in ten years

Problem 2: What is the future value of a 5-year ordinary annuity with annual payments of P200, evaluated at a 15% interest rate?

Problem 3: Justine now has P125. How much would she have after 8 years if she leaves it invested at 8.5% with annual compounding?

Reference no: EM132815608

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